Consumer NZ is raising concerns that supermarket loyalty programmes collect enough data to enable personalised pricing. Here's what the watchdog is worried about — and what the supermarkets say in response.
New Zealand's two major supermarket chains are facing fresh scrutiny over how the data collected through their loyalty programmes could eventually be used to charge different customers different prices for the same items.
Consumer NZ, the consumer watchdog, has raised concerns that loyalty schemes — Foodstuffs' Club+ and Woolworths' Everyday Rewards — gather detailed information about individual shopping habits, including signals about how much each shopper appears willing to spend. The group warns that information could form the basis of increasingly targeted "dynamic pricing", where the price of an item changes based on customer behaviour rather than remaining fixed for all buyers.
What the watchdog is worried about
The concern, outlined by Consumer NZ's head of research and advocacy Gemma Rasmussen, is not that this is happening in New Zealand right now — but that the infrastructure is in place that would make it possible. "The widespread collection of personalised shopping data could end up being detrimental to customers, as it greatly increases supermarkets' understanding of how aggressively items can be priced to individuals," she told RNZ. "Customers could end up paying more."
In its analysis, Consumer NZ pointed to overseas examples where dynamic pricing has moved beyond theory. In Europe, some retailers have begun using electronic shelf labels — already deployed in many New Zealand stores — to change prices multiple times a day, discounting items close to expiry or adjusting to undercut competitors.
The more extreme version, which Consumer NZ describes as the "most controversial", is pricing that varies by individual shopper: an algorithmic calculation determines the maximum each person will pay, and prices are set accordingly.
What happened in the US
Consumer NZ cited a 2025 investigation by Consumer Reports into the online grocery platform Instacart. That investigation found shoppers were shown different prices for the same items, with some customers paying up to 23 percent more than others for identical products. The cause was an artificial intelligence pricing tool that ran randomised price tests on shoppers without their knowledge — adjusting prices to gauge willingness to pay. Following public criticism, Instacart ended those pricing tests in December 2025.
Consumer NZ noted there is no evidence that algorithmic personalised pricing is currently operating in New Zealand supermarkets.
The regional price gaps already visible
Some degree of price variation already exists across New Zealand stores. Consumer NZ pointed to examples: a tub of ice cream from New World cost $5.99 in Orewa but $8.79 in Queenstown, while Turkish apricots ranged from $48.50 per kilogram to $56 depending on the store location. Consumer NZ said this kind of variation partly reflected differences in operating costs between regions.
What the supermarkets say
Both Foodstuffs and Woolworths strongly rejected the characterisation. "We do not use dynamic pricing. We do not have any personalisation in our pricing," a Woolworths spokesperson said. A Foodstuffs spokesperson said the suggestion that loyalty data was used to charge different customers different prices for the same product was "simply wrong" and "not something we do or intend to do".
Both companies said loyalty data is used to understand what customers value, improve product ranges, develop promotions, and deliver rewards — not to personalise individual prices.
The access question
Consumer NZ also flagged a separate concern: the increasing difficulty of accessing supermarket services without joining a loyalty programme. From this month, Foodstuffs followed Woolworths in restricting online shopping to loyalty programme members only. For shoppers who want to opt out of data collection entirely, the practical alternatives are narrowing.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.